East and Central Africa’s Largest Economy
Kenya is the largest and the most advanced economy in East and Central Africa; with strong growth prospects supported by an emerging, urban middle class with an increasing appetite for high-value goods and services.
It is the dominant economy in the East Africa Community, contributing to more than 40% to the region’s GDP. The re-based Gross Domestic Product (GDP) places Kenya as the fifth largest economy in Sub-Sahara Africa and ninth in Africa. Although the economy remains small by global standards, it is distinguished from those of most of African countries by the fact that it is one of the most diversified and advance.
Low Risk Investment Environment
Kenya’s investment climate is the strongest in the EAC, with FDI flowing in from emerging and developed markets and a high volume of multinationals with regional and continent-wide headquarters in the country.
In 2013, Kenya was the top destination for international investors in the Eastern Africa Region after attracting 12 private equity deals valued at over USD 110.5 million.
Strategic Geographical Location
Kenya’s geographical location makes the country ideal for strategic partnerships aimed at improving regional and global market share. Regional connectivity Kenyan infrastructure is the gateway to the vibrant East and Central Africa region and access to the 138 million population i.e. Mombasa ports, Kenya – Uganda railway.
International connectivity through Jomo Kenyatta International Airport functions as an effective air hub between Africa, Europe and Asia.
As well as Kenya’s membership to regional economic blocs, coupled with her strategic geographic position, makes the country the gateway to the huge EAC and COMESA regional Markets and beneficiary of several trade preferential arrangements.
Kenya is a member to several trade arrangements and beneficiary to trade- enhancing schemes that include the Africa Growth and Opportunity Act (AGOA), World Trade Organisation and EAC-EU Trade Agreement. Soon there will be Tripartite Free Trade Area (FTA) cooperation, a regional bloc of the EAC, COMESA and SADC nations. Potential market: 600 Million people!
Political Stability and Favourable Investment Policy
Empowered by a new constitution and administration, the national and
county governments are approaching the private sector as a central partner in
the development and growth of the Kenyan economy.
Kenya’s infrastructure landscape is also undergoing significant transformation as evidenced by commitment of over USD20 billion towards infrastructure development through Public Private Partnerships. Infrastructure Strategy: Increasing investment in infrastructure under PPP arrangements
Reducing Cost of Energy and Improving Energy Availability
Kenya is also perfectly positioned to unleash Africa’s power generation capacity through its focus on green and cost effective sources of energy, set to contribute to a 5000MW increase in the national power grid.
Increasing share of power generated from green and more cost effective sources, with a target to increase electricity generation capacity by 5,000MW from the current 1,644MW to 6,700 MW in 40 months.
Large Pool of Labour Force
Kenya prides itself in its large pool of highly educated, skilled and sought after work force in Africa trained from within the country and in institutions round the world. It is estimated that over 55% of the Kenyan population is aged between 15 and 64. This means therefore that majority of the population is active and able to provide labour.
Well Established Private Sector.
Kenya’s private sector is very substantial including a number of foreign investors and is touted as one of the most resilient in the world. Key players in voicing private-sector concerns include: Kenya Private Sector Alliance (KEPSA), Federation of Kenya Employers (FKE) and the Kenya Association of Manufacturers (KAM).